FX.co ★ Sweden Services PMI Highest Since 2022

In November, Sweden's Services PMI ascended to 59.1 from an upwardly revised 55.9 in October, reaching its peak since June 2022. This marks the third consecutive month that the index has remained above the long-term average. Notably, business volumes saw a sharp rebound, rising to 65.2 from 55.3, while new orders maintained their strong position at 59.5 compared to 60 previously. Moreover, order backlogs increased significantly, reaching 58.9, their highest point in over three years. Companies remained optimistic about future output, with plans rising to 67.8 from 64.9, indicating widespread expectations of heightened activity over the next six months. Despite these positive trends, hiring remained modest, just below the neutral mark at 49.9, albeit improving from 47.6. Additionally, price pressures intensified as input cost inflation rose to 57.2, the highest in eight months. Swedbank analyst Jörgen Kennemar commented that the services sector's recovery has gained momentum this autumn, driven by lower interest rates and an increase in demand, which are influencing companies’ strategic plans.